First-class provider of casino solutions, NetEnt, has further enhanced its integration with Red Tiger to deliver more efficient products. The provider has just completed some organizational changes and reduced the number of employees in the Stockholm office.

Background of Decision

NetEnt earlier unveiled a plan for further integration with Red Tiger, which was acquired in 2019. The deal has contributed to the overall success of the Swedish provider while opening more possibilities for synergy and an increased level of efficiency. The restructuring is seen as a possibility for fast integration together with the relocation of 120 working positions in Malta and Stockholm.

The dedicated provider of live games has undertaken all measures following its long-term growth strategy. NetEnt is also dedicated to increasing competitiveness and enhancing the value of existing products. According to the estimation, the entire restructuring will lead to a reduction of annual costs for SEK 150 million, outperforming the original estimation of the experts.

The Swedish based company also unveiled the expected costs of the restructuring to about SEK 25 million, which will be recorded as non-recurring items and will negatively affect profit for the first quarter of the current year.

Additional Info

NetEnt has also informed the public about the earn-out consideration of the recently acquired Red Tiger. The operator plans to complete the process via the directed issue of shares and cash. Regarding the same topic, the provider has additionally delivered press release available on the official page.

At the moment, the Swedish-based operator is facing Covid-19 related issues and nobody can foresee the eventual consequences of the outbreak. However, the operator’s profit is still not affected by the infection and its revenues are in line with expectations - SEK 490-500 million for the first quarter.

On the same occasion, Group CEO, Therese Hillman said:

“We are now entering the next phase of the integration with Red Tiger, whose sellers are also becoming shareholders of NetEnt. The integration will unleash the full potential of our shared capabilities, create significant efficiency gains in games development and strengthen our position as the market leader in an online casino”.

About

NetEnt is a powerful gaming entertainment group, dedicated to providing state of the art solutions for the iGaming market. It started the activity in 1996 and has ever since then turned in one of the leading developers of casino games. Its reputation is further confirmed with listing on Nasdaq Stockholm. The company employs over 1000 people in worldwide locations - Malta, Stockholm, Sofia, Kiev, Krakow, Gothenburg, Gibraltar and New Jersey.

Source: “NetEnt integrates Red Tiger to realize further synergies”. NetEnt. March 24, 2020.